LOCKO-Bank publishes Consolidated Financial Statements for the year ended 31 December 2014 with the Independent Auditors’ Report by JSC KPMG.
The Bank’s equity amounted to RUB 10.7 billion in 2014, up 2% year-on-year. The Bank maintained traditionally high level of capital adequacy ratio: total CAR at 17.4% and tier 1 CAR at 17% under Basel Capital Accord.
Total assets were RUB 79.3 billion in 2014.
Operating income totaled to RUB 5.5 billion in 2014 due to positive dynamic of core income lines – net interest income and net fee and commission income. Net interest income rose by 9% compared to 2013 and reached RUB 4.6 billion, primarily due to the income growth of loans to customers and financial instruments. Net fee and commission income demonstrated 6% increase year-on-year, basically due to the items: settlements and trade finance and guarantees.
Operating expenses totaled to RUB 4.8 billion in 2014 versus RUB 3.6 billion in 2013 as a result of a significant increase in provision allowance for impairment under the bank's expectations of environmental conditions deteriorating. The Bank maintained traditionally high level of loan loss reserves coverage ratio, LLR was 112% in 2014.
Net profit amounted to RUB 590 million in 2014 versus RUB 1.5 billion in 2013.
The Bank’s conservative approach to provisioning contributed to cost of risk growth, CoR was 3.8% of average gross loans in 2014 versus 2.2% in 2013.
Cost to Income Ratio amounted to 50.3% in 2014.
Return on equity was 5.6% in 2014.
Net interest margin was 5.9% in 2014, remaining flat year-on-year.
Gross loan portfolio reached RUB 51.5 billion in 2014.
SME loans totaled to RUB 32.9 billion, amounted to 64% of total loan portfolio. The Bank took the 14th place in the Expert RA ranking of the 30 largest SME lending Russian banks as of 1 January 2015.
Retail portfolio was RUB 18.7 billion, up 3% compared to 2013.
Net loans comprised 61% of total assets in 2014. NPL ratio (90+ days overdue) was 6.2% in 2014 versus 3.6% in 2013. The dynamics of loan portfolio quality indicators was due to macroeconomic trends and accompanied by an increase in allowances for loan losses.
Total liabilities were RUB 68.6 billion, supporting by key liability items performance: current accounts and deposits from customers (RUB 44 billion), amounts payable under repurchase agreements (RUB 10.6 billion) and own securities issued (RUB 8.5 billion) in 2014.
Current accounts and deposits from customers increased by 20% and amounted to 64% of total liabilities. Retail deposits demonstrated high growth in 2014, up 48% to RUB 25.7 billion. Loan to deposit ratio was 109% in 2014 versus 132% in 2013.
The Bank’s branch network comprised 57 outlets at the end of 2014, operating actively in 21 key economic regions of Russia.
Pavel Voznesenskiy, Deputy Chairman of the Executive Board, commented:
“The key bank’s priority in terms of the economic downturn is to maintain high assets quality and its share in core businesses - SME and retail lending. The Bank will continue to participate in government programs to support lending to these sectors, focusing on low-risk segments and further improving the customer services quality. High capitalization level allows the Bank to implement the plans even in the face of deteriorating external environment”.